Thank you both for your replies. Several more questions:
1. Some of the repairs done were as the result of the home inspection by the purchaser required by their lender. Since these were remedies, can the expenses be included in the cost basis?
2. Can the utilities, property taxes, house insurance, and mortgage interests during the period from the date the house was listed for sale and the closing date be included to the cost basis?
3. What publication and instructions (in addition to pub 544) can I use to read up on sale of the second home?
Thank you.
